The Value Added Tax (Amendment) Act, 2019

An Act to amend the Value Added Tax Act. [27th December, 2019
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Value Added Tax
(Amendment) Act, 2019, and shall be read as one with the Value
Added Tax Act, in this Act referred to as the principal Act. (2) This Act shall come into operation on 1st January,
2020. 2. Section 2 of the principal Act is amended by the insertion of
the following definitions in the appropriate places in alphabetical
order:
Aelectronic commerce@ means the buying, selling, advertising
or marketing of goods and services using the internet,
mobile telecommunication networks and other electronic
commerce infrastructure;
Aelectronic service@ means a service capable of delivery of
data across multiple electronic commerce platforms; and
Aelectronic payment machine@ means a payment terminal used
by a taxable supplier to receive a payment. 3. Section 7 of the principal Act is amended by the deletion of
subsections (3) and (4) and the substitution therefor of the following:
(3) A taxable supplier shall issue a tax invoice for the supply
of goods and services using an electronic fiscal device.

on therefor of the following:
(3) A taxable supplier shall issue a tax invoice for the supply
of goods and services using an electronic fiscal device.

(4) Despite subsection (3), the Commissioner-General may
approve the issuance of a tax invoice using an approved
computer application or pre-printed tax invoice by a taxable
supplier. Value Added Tax
(Amendment) [No. 14 of 2019 383
Cap. 331
Title and
commencement
Amendment
of section 2
Enactment
GOVERNMENT OF ZAMBIA
ACT
No. 14 of 2019
Date of Assent: 27th December, 2019
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K8.00 each.

of Assent: 27th December, 2019
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K8.00 each.

(5) A taxable supplier who fails to issue a tax invoice
commits an offence and is liable, on conviction, to a penalty
not exceeding three hundred thousand penalty units or to
imprisonment for a term not exceeding three years, or to
both. 4. The principal Act is amended by the insertion of the following
new section immediately after section 7:
7A. (1) A taxable supplier shall use an electronic fiscal
device to record daily sales. (2) Despite subsection (1), the Commissioner-General may
approve the use of a document, device or equipment, other
than an electronic fiscal device, for a certain category of
taxable suppliers. (3) A taxable supplier that contravenes this section commits
an offence and is liable, on conviction, in the case of -
(a) a first offence, to a penalty not exceeding thirty thousand
penalty units;
(b) a second offence, to a penalty not exceeding sixty
thousand penalty units; and
(c) a third offence or subsequent offence, to a penalty not
exceeding ninety thousand penalty units. 5.

ot exceeding sixty
thousand penalty units; and
(c) a third offence or subsequent offence, to a penalty not
exceeding ninety thousand penalty units. 5.

Section 8 of the principal Act is amended by the—
(a) deletion of sub-sections (5), (5A), (6), (7), (8), (8A) and
(9) and the substitution therefor of the following:
(5) A recipient of an imported service shall pay tax
on the importation of a service, where a service
is performed, undertaken, or utilised in the
Republic or the benefit of the supply is for a
recipient in the Republic. (6) The tax under subsection (5) shall be paid if—
(a) the recipient of the imported service has not
paid tax due in the country of exportation; or
(b) the supplier who is resident outside the
Republic has not appointed a tax agent. (7) The input tax corresponding to the tax paid under
subsection (5) shall be excluded from any claim,
deduction or credit under section eighteen. Insertion of
section 7A
Record
of daily sales
Amendment of
section 8
Value Added Tax
384 No. 14 of 2019] (Amendment)

or credit under section eighteen. Insertion of
section 7A
Record
of daily sales
Amendment of
section 8
Value Added Tax
384 No. 14 of 2019] (Amendment)

(8) A supplier who does not have a registered
office or permanent address of business in the
Republic shall appoint a person resident in the
Republic as a tax agent to act on behalf of that
supplier in matters relating to tax. (9) Where the Commissioner-General accepts the
appointment of a tax agent, referred to in
subsection (8), any liability of the taxable supplier
under this Act, other than any liability subsisting
before the agent=s appointment, shall on and
from the date of appointment, and without
affecting such liability of that supplier, subsist
to a like extent and severally against the tax
agent until a time as the Commissioner-General
may determine. (10) The liability of the taxable supplier that extends
to a tax agent includes the liability to-
(a) keep and preserve, or produce records or
accounts;
(b) furnish a tax return;
(c) pay tax or interest under the Act; and
(d) comply with any requirement of the
Commissioner-General in respect of the
business.

rnish a tax return;
(c) pay tax or interest under the Act; and
(d) comply with any requirement of the
Commissioner-General in respect of the
business.

(11) For the purposes of this section, Asupply of
services@ includes the supply of a service that
is made by a supplier who is resident or carries
on business outside the Republic to a recipient
who is resident in the Republic. 6. The principal Act is amended by the insertion of the following
new sections immediately after section 8:
8A. (1) Tax is payable on the provision of an electronic
service in the Republic where that service is performed,
undertaken, or utilised in the Republic or the benefit of the
supply is for a recipient in the Republic regardless of
whether the provider of the service has a place of business
in the Republic or the service is paid for outside the
Republic. Insertion
of section 8A
and 8B
Electronic
service
Value Added Tax
(Amendment) [No. 14 of 2019 385

lic or the service is paid for outside the
Republic. Insertion
of section 8A
and 8B
Electronic
service
Value Added Tax
(Amendment) [No. 14 of 2019 385

(2) A supplier of an electronic service, a tax agent in the
Republic or the person providing an electronic commerce
service shall account for the tax on electronic commerce. (3) Where a supplier of an electronic service does not have
a registered office or permanent address of business in
the Republic, that supplier shall appoint a tax agent who is
resident in the Republic for the purpose of accounting for
the tax on electronic commerce. (4) Despite subsections (2) and (3), the Commissioner-
General may appoint a tax agent who is resident in the
Republic to account for tax on an electronic service. (5) A supplier of an electronic services whose turnover is
below the tax registration threshold, shall account for tax
on an electronic service using a taxpayer identification
number and a special return prescribed by the
Commissioner-General. 8B. The Commissioner-General may appoint a person
resident in the Republic as a tax agent to withhold tax on
payments made to a taxable supplier of goods and services. 7.

-General may appoint a person
resident in the Republic as a tax agent to withhold tax on
payments made to a taxable supplier of goods and services. 7.

Section 19 of the principal Act is amended by the—
(a) insertion of the following new subsection immediately
after subsection (1):
(1A) A taxable supplier shall have an electronic
payment machine at a point of sale.; and
(b) renumbering of subsection (1A) as subsection (1B). 8. The principal Act is amended by the repeal of section 42A. 9. Section 51(2) of the principal Act is amended in paragraph
(h) by the insertion of the words Asupply and@ immediately after the
word AThe@. Value added
tax
withholding
agent
Amendment
of
section 19
Repeal of
section 42A
Amendment
of
section 51
Value Added Tax
386 No. 14 of 2019] (Amendment)